Farming businesses on the journey to more sustainable practices can now receive discounts on loan fees as part of a new HSBC UK initiative.
HSBC UK has launched the HSBC Sustainable Farming Pathway with farming charity Linking Environment and Farming (LEAF) its first partner on the scheme.
Farming businesses with the LEAF Marque certification or those that complete a LEAF Sustainable Farming Review, will be eligible for discounted loan arrangement fees on term lending amounts from £25,001. Lending in scope includes flexible business loans, commercial mortgages and property development loans.
Martin Hanson, Head of Agricultural Banking at HSBC UK says: “We are delighted to launch the HSBC Sustainable Farming Pathway to help farming businesses transition to more sustainable techniques.
“Our research shows around two-thirds (70%) of farms are currently making commitments to transition to sustainable practices. By working with LEAF and future partners, we have the opportunity to directly support farmers who want to make sustainable choices.”
HSBC UK also found that more than two-thirds (70%) of UK farms are engaged in agri-environment schemes, as defined and recognised by DEFRA, to support nature and biodiversity enhancements.
The HSBC survey found regular sustainable practices are already taking place with around a third (38%) of farmers regularly soil testing fields to inform NPK applications while 28% of dairy clients have undertaken a carbon audit.
To become more sustainable, farmers identified the areas they want to invest in as renewables (54%), slurry storage (22%) and energy efficiency (20%).
Clare Mike, LEAF’s Director Technical & Business Development said: “LEAF Marque farmers are increasingly focused on incorporating sustainable practices into their operations. They’re reviewing how to best balance soil sensitivity, enhance landscape and nature habitats, protect water, invest in renewables and boost biodiversity.
“Sustainability is high on the agenda for the UK’s agri sector, and the new HSBC Sustainable Farming Pathway can help many businesses in their transition journey.”
